Stock (Symbol) | Stock Price | |
Buffalo Wild Wings (BWLD) |
$140 |
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Data is as of | Expected to Report | Sector |
May 16, 2014 |
Jul 28 – Aug 01 |
Retail & Travel |
Sharek’s Take | ||
Buffalo Wild Wings (BWLD) continues to kill it because of lower wing prices. Profits soared 71% past quarter on only a 21% increase in sales. Next qtrs estimate increased too, but after that the company has tougher comparisons. Right now teen profit growth is expected later this year — and those numbers will be hard to beat because there was also low wing prices a year ago. I feel BWLD’s profit growth peaked last quarter, and will decelerate from here (but still be good). I’m a long-term holder of this stock and think long-term on its valuation. BWLD is flying high, but high expectations are partially reflected in its stock price. | ||
One-Year Chart | ||
Wow, BWLD has posted some sweet profits the past four quarters. But notice Estimates don’t look so good. I’ve owned this stock for almost a decade, its worth 25 times earnings most of the time. If growth decelerates that P/E could come down a bit. | ||
Earnings Table | ||
As mentioned earlier, BWLD had 71% profit growth on only a 21% boost in sales. Lower wing prices really helped, as did same store sales of around 6%. BWLD beat the street by a good amount last quarter. Annual Profit Estimates keep bulging. Quarterly estimates look good next quarter, then this table shows teens-growth after that. I feel the company has momentum and could continue to raise and beat estimates. |
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Fair Value | ||
Notice here how the P/E was in the low 20s for much of the decade. I think once profit growth gets back to normal BWLD will get a 25 P/E. In the meantime everything is going great so BWLD is worth 30 times earnings. | ||
Ten-Year Chart | ||
I originally bought this stock in 2006, paid $19 for it. Ladies and gentlemen, here is the power of compounding. Such a great ten-year chart, I just want to sit back and look at it for a while. | ||
Power Ranking | Bottom Line | |
Growth Portfolio
20 of 26 |
Buffalo Wild Wings continues to do well with lower costs of goods sold. But on a long-term view the stock has a 28 P/E and that’s a bit high. I think the stock has momentum now, but I wouldn’t be buying much at this level as BWLD has already been on a run. BWLD is ranked 20th in the 26 stock Growth Portfolio Power Rankings. This stock isn’t in the Aggressive Growth Portfolio. |
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Aggressive Growth Portfolio
N/A |